Watch it again, you are wrong. He most certainly the blew the whistle and pointed to the spot for a try. He then blew time off, at no point in time did he indicate video ref.
The video ref saw the incident then overruled Badger. As reefy has mentioned the video ref can over rule in acts of foul play.
The game is soft, it was a great shot, if he wraps his arms around and the fullback drops it, its play on and try.
http://www.nrl.com/Video/2012SmartR...deoquality=1&type=onreport&period=1&time=1407
Maybe its just me, but I saw Badger point to the spot with the whistle in his mouth and cheeks puffed, the exact way that referees prepare themselves before blowing a whistle to indicate try. He then blows time off and begins the Video Referee signal (camera cuts away).
It is unclear if Badger changed his own mind or whether he was urged to by the pocket ref or touch judges due to other noises involved (commentary/crowd).
I agree with the fact that was a shame a great hit like that is not rewarded, but rather punished. But it is noted in the law book that any contact with the head whether it be first, second or twelfth contact is regarded as misconduct. I know through all my years playing and refereeing rugby league that contact with the head is unavoidable in 50-70% of tackles and its usually the severity of the contact is what is more likely to be penalised. When Badger saw that Hoffman was not getting up he made the decision to refer it.
Lets not get me wrong, I have been a Sharks supporter for 20ish years, it's just a shame the rulebook is worded in a way that prohibits any contact with the head, accidental or otherwise.